US Stock Futures Race Higher on Better Risk Sentiment

Equities

Major US stock-index futures started the week on a stronger note, rolling back last week's losses. AstraZeneca announced over the weekend the resumption of its late-stage vaccine trial, reviving hopes of a reputable vaccine that could put an end to the threat of Covid19. On the other hand, market participants are looking forward to the Fed's monetary policy meeting later this week, where the market expects the Fed's policy to remain highly accommodative. The Dow Jones Industrial Average futures rose to 27981, the S&P500 futures rallied to 3384, and Nasdaq futures advanced to 11272.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 93.08 during the first trading hours of the week. The rebound of the European currencies and enhanced market positive sentiment weighed on the buck. Traders are bracing themselves for a busy calendar from the US this week, with the FOMC meeting being a key event. The EURUSD rallied to $1.1864, the GBPUSD rebounded to 1.2848, and the AUDUSD inched higher to $0.7289.

Metals

Precious metals prices rallied slightly higher as the dollar declined. The price of a gold ounce rose to 1951, trimming Friday's losses, the price of a silver ounce ascended held steady below $27, and palladium futures inched higher to $2347.

Oil

Oil prices remained under pressure despite shut down of production in the Gulf of Mexico. Tropical storm Sally forced oil producers to halt production as it was evolving. However, the fears of oversupply and lessened demand continued to weigh on the price outlook. The West Texas Intermediate crude October delivery dipped to $37.09 after trading at $37.65, and Brent Blend November delivery declined to $39.56.

Major Economic Events

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.